Consumers could pay higher prices on goods shipped from China, if the United States goes through with President Trump's decision to pull out of the Universal Postal Union. Congressman Ralph Abraham applauds the decision, because he says under the current 144-year-old treaty, China receives shipping subsidies usually reserved for poor nations, giving their businesses an unfair advantage.
“Now it will just be the regular postal rate just like we have to pay anytime we ship something anywhere in the world. It levels the playing field.”
The UPU was formed in 1874 and governs the shipping rates between countries for all 192 member nations.
Abraham says after consulting with industry leaders in Louisiana who rely on items from China, specifically those in chemical manufacturing, he discovered most businesses were fine with the decision, and don't expect it will damage the state economy.
“I haven’t had any push back so I’m assuming that everyone is good with it. Again, it’s a fair deal and that’s all we ask from any country.”
Past American efforts to enforce new trade rules have led to retaliatory tariffs from the People’s Republic that have hammered Louisiana’s agriculture exports, but Abraham says moves like this will help keep up the pressure and force China into better trade deals.
“We know it’s tough right now, especially for our farmers who are taking it on the chin, but in the long run, we win. This is what we have to do for the good of the economy and for the good of the republic.”
Abraham has legislation that would allow the Secretary of State to require that certain countries do not receive special rates when shipping to the US.